The UK Build to Rent (BTR) sector transacted circa £1.5bn worth of deals in H1 2021, reflecting a 30% increase year-on-year according to new data from global real estate advisor CBRE. This follows a record breaking 2020 where £3.5bn of investment deals were recorded in the BTR sector.

For the second quarter of 2021, £736m was committed to the sector, up 67% year-on-year when compared to investment volumes from the same period last year, during the first lockdown. A further £1.9bn worth of deals are currently under offer, which is up from the £1.4bn under offer in Q1 2021 reflecting a 26% increase over the quarter and demonstrating a very healthy pipeline.

Key deals to have transacted in the second quarter of 2021 include Grainger’s acquisition of The Forge BTR scheme in Newcastle and an asset in Derby on a forward funding basis as well as Heimstaden’s first acquisition into the UK BTR sector, with the funding of Soho Wharf in Birmingham, showing the continued rise of European capital into the sector.

Penny Davidson, Associate Director, Residential Valuations, CBRE said:

“Positive activity has continued into the BTR sector in the first half of 2021 and as we emerge from COVID restrictions, letting activity has picked up and sentiment is strong. The market is gaining momentum and this is further demonstrated with some key changes to our Prime Regional and Other Regional Centre yields.”